India's aviation regulator places SpiceJet under operational, financial scrutiny
India’s aviation ministry has placed troubled carrier SpiceJet under operational and financial scrutiny following its long-running cash flow troubles, worsened by the ongoing Middle East conflict, a government official said on Tuesday. Civil Aviation Minister Ram Mohan Naidu said the government was closely monitoring SpiceJet’s operations and finances through the aviation regulatory body to…
India's aviation regulator has initiated operational and financial scrutiny of struggling carrier SpiceJet due to persistent cash flow issues exacerbated by the ongoing Middle East conflict, according to a government official on Tuesday. Civil Aviation Minister Ram Mohan Naidu announced that the government is closely monitoring SpiceJet's operations and finances via the aviation regulatory body to ensure safety remains uncompromised.
This move follows increased focus on aviation safety in India following recent industry disruptions, as regulators aim to prevent financial strain from impacting operations or passenger safety.
Naidu stated that while there are limits to how extensively the government can intervene in privately owned businesses, the Administration has extended the Emergency Credit Line Guarantee Scheme (ELGS), providing SpiceJet with a financial lifeline of 1.5 billion rupees ($15.67 million). The minister's comments were made at a press conference, months after Reuters reported that the company was actively seeking government funding after suspending pilot salaries this year.
SpiceJet, once India's second-largest domestic carrier by market share in 2019, has grappled with declining market share, escalating fuel costs, and fierce competition.
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